When Is Your First Mortgage Payment Due?
Unsure when your first mortgage payment is due? Get clear answers on the timing, prepaid interest, and how to confidently manage your initial payment.
For new homeowners, understanding the timing of their first mortgage payment is important. This initial financial obligation depends on several factors, including the closing date and how interest is calculated. This article clarifies the determinants of your first mortgage payment due date.
Calculating Your First Mortgage Payment Due Date
Your first full mortgage payment is typically due one to two months after your loan closing. Mortgage payments are made “in arrears,” meaning each payment covers the interest accrued for the preceding month. For example, a payment made on September 1st generally covers August’s interest.
Understanding this concept helps clarify why your first payment is not due just days after closing. If you close your mortgage on July 15th, your first full principal and interest payment will likely be due on September 1st. This payment covers the interest for the entire month of August, with the principal portion also reducing your loan balance.
This standard practice provides a period of time before the first full monthly payment is required. The exact due date will always be specified in your loan documents.
Understanding Prepaid Interest and Your First Payment
A significant factor influencing the timing of your first full mortgage payment is the concept of prepaid interest. This refers to the interest that accrues on your mortgage loan from the date of closing through the final day of that same calendar month. For instance, if you close on July 15th, you will owe interest for the period from July 15th to July 31st.
This amount is collected from you at the loan closing, forming a component of your overall closing costs. The purpose of collecting this prepaid interest is to ensure that all interest for the period you have owned the home is covered up to the point your regular monthly payment cycle begins. By paying this partial month’s interest upfront, your first scheduled mortgage payment then accurately covers the interest for the subsequent full month.
Receiving Your First Mortgage Statement
Before your first mortgage payment is due, you should receive a statement from your loan servicer. This document is typically sent several weeks ahead of the due date, providing ample time to prepare. The statement will clearly outline the total amount due, the precise due date, and a detailed breakdown of how your payment is allocated.
This breakdown usually includes the portions for principal, interest, property taxes, and homeowner’s insurance, often referred to as PITI. Mortgage statements may arrive via postal mail or be accessible through an online portal established by your servicer. If you do not receive your statement within a reasonable timeframe, such as two to three weeks before your anticipated due date, contact your loan servicer directly to avoid any potential late payments.
Making Your First Mortgage Payment
Once you have received your first mortgage statement and confirmed the due date and amount, the next step involves submitting your payment. Loan servicers offer various methods for payment submission to accommodate different preferences. Many borrowers opt for online payments through the servicer’s dedicated web portal, which often requires setting up an account and linking a bank account.
Another common method is mailing a check to the address specified on your statement or provided by your servicer. Some servicers also accept payments over the phone. For ongoing convenience and to avoid missing future payments, many homeowners choose to set up automatic payments directly from their bank account.
Regardless of the method selected, it is important to ensure your payment is submitted on or before the due date to prevent late fees or negative impacts on your credit history.